The Bank of England's Monetary Policy Committee met today, 17 September 2026, and voted 6-3 to hold the base rate at 3.75%, the sixth consecutive hold. But the more useful story for Hull investors isn't the hold itself, it's what's already happened to buy to let borrowing costs this year, and what that opens up locally.
What's Actually Happened to BTL Borrowing Costs in 2026
Buy to let rates, including limited company BTL, rose sharply this spring. The average two-year fixed BTL rate jumped from 4.66% to 5.44% in a single month, between 1 March and 1 April 2026, and the average five-year fix rose from 5.05% to 5.75% over the same period. That spike was driven by the Middle East conflict pushing up swap rates and inflation expectations, not by anything the Bank of England itself has done. Rates have eased a little since their April peak, but remain meaningfully higher than they were at the start of the year.
For limited company borrowers specifically, the best five-year fixed deals are currently available from around 4.39% on a pay-rate basis, with the true, fee-inclusive cost starting from roughly 5.06%. The historic penalty for borrowing through a limited company structure has largely disappeared, most lenders now price Ltd Co and personal BTL borrowing almost identically.
Higher Borrowing Costs Put Off Other Buyers, Which Is an Opportunity, Not Just a Cost
Here's the part that matters more than the rate itself: higher borrowing costs don't affect every buyer equally. A lot of less committed or less prepared buyers simply step back from the market when financing gets more expensive, whether that's first-time investors who were only ever lukewarm on a deal, or owner-occupiers stretched thin on affordability. That typically means less competition on the properties that remain, which is exactly the kind of environment where a patient, well-prepared investor can negotiate harder and secure a genuinely good purchase price.
This lines up directly with the principle we've written about before: money is made when you buy. A market where borrowing is more expensive is often precisely the market where the buying itself gets easier, even if the ongoing cost of finance is higher than it was a couple of years ago.
Rents Are Still Moving in the Right Direction
At the same time, demand for rental property in Hull hasn't softened, if anything the opposite, as we covered in our recent piece on the wider housing crisis. That combination, a quieter buying market alongside continued upward pressure on achievable rent, is genuinely the sweet spot for an investor buying now: a better purchase price, with a realistic prospect of rent growth supporting the numbers as the tenancy goes on.
Keeping Rent in Line With Costs Is What Actually Protects the Deal
None of this works if rent reviews get neglected. If mortgage costs rise, whether through a remortgage onto a higher rate or simply the ongoing cost of new borrowing, and rent stays flat, the cashflow on a property can quietly erode to the point where a deal that looked solid on day one no longer is. Staying disciplined about annual rent reviews, in line with the market and general inflationary pressure rather than letting rent drift behind cost increases, is what keeps a property performing the way it was meant to when you first ran the numbers.
This isn't about chasing the maximum rent possible. It's about making sure the numbers you based a purchase decision on don't quietly stop being true a year or two later because costs moved and rent didn't.
What This Means Practically
If you're actively looking to buy in Hull right now, a market with fewer competing buyers is worth taking seriously, even with borrowing costs where they are, particularly if you're financing through a limited company structure where rate parity with personal borrowing means the incorporation decision doesn't cost you on price. And if you already own property here, this is a good prompt to check whether your rent still reflects both the market and your actual costs, rather than assuming last year's figure still works.
We're happy to talk through either side of this, sourcing a deal or reviewing an existing portfolio's numbers, with no obligation.
This article reflects Bank of England and buy to let mortgage market data as it stood on 17 September 2026 and is intended as general commentary, not financial or mortgage advice. For advice specific to your mortgage or remortgage, speak to a qualified mortgage broker. WG Property is an independent letting agency based in Hull, managing properties across all HU postcodes and the wider East Yorkshire area.